Resurgent IAG ready to dump Swissport

BRITISH Airways owner IAG has heaped further pressure on embattled baggage handling firm Swissport as it landed its best second quarter since 2007 with a 55 per cent surge in profits driven by a recovery at its Spanish airline Iberia.

IAG is threatening to stop using the company unless it improves its performance. IAG chief executive Willie Walsh said axing Swissport “is an option available to us”. He added: “ If they do not improve performance they are going to lose business.”

Staff shortages at Swissport led to some passengers at Gatwick flying home without their luggage last weekend.

Monarch and Thomas Cook have already indicated that they are terminating their contracts with Swissport due to the fiasco.

Walsh acknowledged that “severe weather disruption” had contributed to the chaos but made it clear that Swissport needed to up its game.

IAG posted an operating profit of €380million (£301million) in the second quarter, up from £194million a year earlier after a turnaround at Iberia.

Chief Willie Walsh has had stern words for Swissport [HANDOUT]

If we thought Iraq was unsafe, we would not be flying over Iraq

Willie Walsh

Interim pre-tax profits were £123million compared to a £141million loss a year ago, while revenues were down from £7.4billion to £6.9billion.

BA’s performance has been helped by fuel-saving devices, such as its aircraft taxiing with just one engine, and flexibility in reducing flight numbers.

Walsh said BA’s ability to reduce flight numbers “puts us more in control of our business than some of our competitors”.

Walsh pledged that BA would continue to fly over Iraqi airspace despite the decision of Emirates to re-route flights because of concerns over Islamic militants on the ground.

He said: “If we thought Iraq was unsafe, we would not be flying over Iraq.”

However, BA did take the decision in March this year to halt flights over another international hot spot, Ukraine, before the Malaysian air disaster.

But Walsh was adamant no blame could be attributed to Malaysia Airlines. “What happened was a disgrace. The industry is outraged.”

One gripe that continues to anger Walsh is Government immigration rules, which he claims is undermining Chinese tourism numbers to the UK.

Last year BA launched a new route to Chengdu, a strong business region in south-central China.